In a significant development, the Gujarat High Court, presided over by Justice Bhargav D. Karia and Justice Niral R. Mehta, raised pertinent queries regarding the extension of the show-cause-notice period under the Central Goods and Service Tax Act, 2017.
Legal representation is provided by Ashva Legal Advisors LLP, Avinash Poddar and Anchal A Poddar for the petitioner.
During the proceedings, Advocate Avinash Poddar highlighted a crucial point, arguing that the impugned notification (no.9 of 2023, dated 31.03.2023) lacked specific grounds for extending the time period for issuing show-cause-notices under Sub-section 10 of Section of the Central Goods and Service Tax Act, 2017.
This move, he asserted, was made under the powers granted to the Central Board of Indirect Taxes and Customs pursuant to Section 168A of the Act.
The court, led by Justice Bhargav D. Karia, engaged in an oral discussion on the matter on 21st December 2023. Mr. Poddar emphasized the absence of grounds in the notification, questioning the validity of the extension.
It was also submitted that, “after the year 2022 there was no COVID Pandemic in existence and accordingly the provisions of Section 168A of the Act would not be applicable for extension of time.”
He also invited the attention of the Court to the explanation to section 168A of the Act and submitted that none of the eventuality mentioned therein existed when the impugned notification was issued by the Central Board of Indirect Taxes and Customs.
This development sheds light on a potential legal challenge to the extension of the show-cause-notice period in the realm of GST regulations.
The outcome of this case could have implications for businesses navigating the complexities of the Central Goods and Service Tax Act.
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